Trading Products

Index Introduction

        The index (stock index), is a relative indicator reflecting the stock price movements in different periods. The price changes and the profit or loss caused by price changes are reflected and presented by CFD. Through various global stock index products, you can indirectly understand the economic situation of the United States, Germany, Australia and Japan. Consider the current development trends of each market, and choose the right market for trading according to personal goals, return on investment, and risk tolerance.

Why invest in stock index?

Risk Hedging

You can buy or sell a single index trade without restrictions on stop and limit trading. Multiple stock indices establish stop loss, limit price and pending orders without a minimum distance limit.

Low Cost

Relative to stocks, the cost of engaging in futures trading is only commission. The transaction does not have to pay the stamp duty and the exchange fee, and the profits brought by the transaction do not have to pay the asset value-added tax.

Rich Variety

HC provides diversified stock index products. In addition to the stock indexes in the financial sector, it also provides stock indexes that focus on high-tech, high-growth and non-financial stocks, or stock indexes that take into account expected dividend returns.

Price Discovery

The price formed by the stock index can be recognized by all parties because there are many investors involved, and these investors have rich experiences, and the price thus formed directly represents the relationship between supply and demand. This produces a real, effective, and authoritative price.

Transaction Details

MarginThe margin requirement is 2%, which is 1:50 leverage. Trading Hours (GMT-5): Based on the actual contract trading time, please refer to the specification of each instrument.

Instrument Quotation Currency Min Trade Size (Lot) Max Trade Size (Lot) Floating Average Spread Instrument Quotation Currency Min Trade Size (Lot) Max Trade Size (Lot) Floating Average Spread
EUSTX50 Euro 1 500 100 US30 US Dollar 1 2500 120
GER30 Euro 1 1000 150 US500 US Dollar 1 1000 30
HK50 HongKong Dollar 1 1000 350 UKOIL US Dollar 0.01 1 120
JPN225 Yen 1 25000 500 USOIL US Dollar 0.01 1 27
NAS100 US Dollar 1 2000 70 SING Singapor Dollar – – Offer quotes only
SPA35 Euro 1 250 350 CHH HongKong Dollar – – Offer quotes only
SWI20 Swiss Franc 1 250 480 CHA50 US Dollar – – Offer quotes only
UK100 British Pound 1 1000 170          

Transaction Example

Sell Hang Seng Index (HK50)

One customer believes that the HSI (HK50) is overvalued and will soon decline.

Assuming that the HIS (HK50) is quoted at 28594.90/28590.90. The customer sold 5 lots of HK50 at 28590.90.

When the HK50 fell to 28490.90/28486.90, the customer decided to close the position.

Transaction Description Profit/Loss
Sell 5 lots of HK50 with a price of 28590.90 28590.90/7.84*5=18,233 USD (Contract Value)
The margin requirement is 2% 18,233 *0.02= 364.66USD Initial margin (will change due to market price)
The commission is 0.0036% of the contract value (unilateral) 18,233*0.0036%*2=1.31 USD (It is assumed that the closing price is the same as the opening price, so the commission will change due to market price.)
Close 5 lots of HK50 (buy), the buying price is 28490.90 (28590.90-28490.90)/7.84*5-1.31 = 62.46 USD Profit